Oman's crude production tops 29mn barrels
December 11, 2019 | 4:41 PM
by Times News Service
Photo: File

Muscat: Oman’s crude oil and condensates production stood at 29.15 million (29,151,120) barrels during November 2019 with a daily average of 971,704 barrels.

The monthly report issued by the Ministry of Oil and Gas pointed out that the total exported quantities of Oman crude oil during November 2019 reached 28. 85 million barrels, with a daily average of 961,926 barrels.

Chinese imported volume of Oman’s crude oil during the month, recorded 92.99 per cent of the total exports of Omani crude oil, compared with the previous month (October 2019).

At the same trend, Japan’s imports of Omani crude increased by 0.27 per cent to reach 3.55 per cent compared with November quotas. It is worth mentioning, November imports witnessed a return of demand from the buyers in India.

The crude oil prices have risen higher during November 2019 futures settlement trading, compared to October 2019 for major crude oil benchmarks around the world. The West Texas Intermediate (WTI) crude oil at the New York Mercantile Exchange (Nymex) has averaged $57.09 a barrel, up by $3.06 compared to October 2019 trading. With the same trend, North Sea Brent blend on the ICE in London averaged $62.71 and seventy-one cents a barrel, increased by $3.08 only compared to October 2019.

Likewise, the average monthly price for Oman Crude Oil Futures Contract at the Dubai Mercantile Exchange (DME) jumped by 4.2 per cent compared to the previous month. The Official Selling Price (OSP) for Oman crude oil during trading of November 2019, for the delivery month of January 2020, settled at $62.81 per barrel, an increase by $2.55 compared to December 2019 delivery. The daily trading marker price ranged between $59.87 per barrel and $64.63 per barrel.

During November 2019, several factors have supported the market and eventually the prices to hikes, and the most notable factor was the signs of a breakthrough in the trade conflicts between the United States of America and China, which lifted US stock indices to record highs and consequently helped in improving oil markets.

Besides, the anticipation of the oil markets for the meeting of Organisation of Petroleum Countries (Opec) and Opec Plus in early December 2019 and the expectations of analysts that the Opec Plus alliance will continue to reduce production to address the oversupply in global markets, pushed the prices up.

Besides, the market expectations for a healthy demand in the coming year, as well as the decline in United States commercial inventories, have all contributed to the improvement in global crude oil prices.

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